Commerce · Class 11 Commerce
Ch 31Discharge and Breach of a Contract — Class 11 Commerce, concept-first.
A contract does not stay alive forever — at some point the obligations under it come to an end. Discharge of a contract means the termination of the contractual relationship between the parties, so that neither is bound to perform their remaining obligations under it any longer.
Key concepts
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Modes of Discharge of a Contract
A contract can be discharged by performance, by mutual agreement (novation, rescission, alteration, remission, waiver), by supervening impossibility (frustration), by lapse of time under the Limitation Act, by operation…
Most relevant Q&A
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Chapter contents
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Meaning of Discharge of Contract
A contract does not stay alive forever — at some point the obligations under it come to an end. Discharge of a contract means the termination of the contractual relationship between the parties, so th…
Modes of Discharge of a Contract
A contract can be discharged in six broad ways:
Discharge by Performance and by Agreement
Discharge by performance is the most straightforward mode — once both parties have done exactly what they promised (or, where relevant, a valid tender has been made and refused), the contract stands d…
Discharge by Supervening Impossibility — The Doctrine of Frustration
Section 56 of the Indian Contract Act provides: an agreement to do an act impossible in itself is void, and a contract to do an act which, after the contract is made, becomes impossible, or, by reason…
Discharge by Lapse of Time and by Operation of Law
Discharge by lapse of time: the Limitation Act prescribes a fixed period within which a party must bring a legal action to enforce their contractual right; if that period expires without the right hav…
Breach of Contract — Meaning and Types
Breach of contract occurs when a party, without lawful excuse, fails or refuses to perform their obligations under a contract, or does something that makes performance impossible, or disables themselv…
Remedies for Breach of Contract
When a contract is breached, the law provides the aggrieved (injured) party with several possible remedies, which may be pursued singly or, in appropriate cases, together.
Exercises
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- Q1What is discharge of a contract? State the various modes by which a contract may be discharged.Free
- Q2Explain discharge of a contract by supervening impossibility, with examples.Free
- Q3What is the Doctrine of Frustration? Would a contract be frustrated merely because it has become more expensive or inconvenient to perform?Free
- Q4Distinguish between actual breach and anticipatory breach of contract.Preview
- Q5What are the remedies available to an aggrieved party on breach of contract?Preview
- Q6Distinguish between ordinary (general) damages and special damages.Preview
- Q7What is meant by 'Quantum Meruit'? Give an example.Preview
- Q8When can an aggrieved party claim specific performance instead of damages?Preview
- Q9A agrees to supply 100 bags of wheat to B on 1st March. On 15th February, A informs B that he will not be able to supply the wheat at all. W…Preview
- Q10Explain discharge of a contract by lapse of time.Preview
Sample & Board Papers
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